EC Reflects On How To Achieve Digital Single Market

by Ulrika Lomas, Tax-News.com, Brussels

26 October 2009

The European Commission is looking at how to remove regulatory and territorial obstacles standing in the way of digital distribution of cultural products and services, and to deter illegal downloads on a large scale, which can jeopardize the development of an economically viable single market for digital content.

The Commission has drafted a "reflection paper" jointly with the services of Commissioners Viviane Reding (Information Society and Media) and Charlie McCreevy (Internal Market) which outlines current challenges for three groups of stakeholders – rightholders, consumers and commercial users – and invites everybody interested to participate in a broad debate about the possible European responses to them.

"Copyright and the Internet are two powerful engines for driving creativity and innovation for the benefit of all Europeans. They should be combined in the new project of a competitive and prosperous Digital Single Market. Such a Digital Single Market can only be built with content creators on board; and with the generation of digital natives as interested users and innovative consumers," observed Commissioner Reding.

"It will be my key priority over the next years to work, in cooperation with other Commissioners, on a simple, consumer-friendly legal framework for making digital content available across borders in the EU, while ensuring at the same time a robust protection of copyright and a fair remuneration of creators."

"The protection of intellectual and industrial property – copyrights, patents, trademarks or designs – is at the heart of a knowledge-based economy and central to improving Europe's competitiveness. This is a priority for reform: grounded on sound economics, not just legal concepts, and concentrating on solutions that foster innovation and investment in real life", added Charlie McCreevy.

The Commission said that specific consumer- and competition-friendly rules were needed to create a genuine Single Market for creative content on the internet.

To do this, it set out three areas where legislative action was needed to:

• Make sure creativity is rewarded so that creators, rightholders, and Europe's cultural diversity can thrive in the digital world;
• Give consumers clearly-priced, legal means of accessing a wide range of content through digital networks anywhere, anytime; and
• Promote a level playing field for new business models and innovative solutions for the distribution of creative content across the EU.

In Europe, the cultural and creative sector (which comprises published content such as books, newspapers and magazines, musical works and sound recordings, films, video on demand and video games) generates a turnover of more than EUR650bn annually and contributes to 2.6% of the EU's GDP, employing more than 3% of the EU work force. European policymakers therefore have a responsibility to protect copyright, especially in an evolving economic and technological environment.

The Commission now wishes to focus the debate on practical solutions for encouraging new business models, promoting industry initiatives and innovative solutions, as well as on the possible need to harmonise, update or review the applicable rulebook of the EU's single market. Comments can be sent by January 5, 2010.

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